WeWork India has received a tax order from the CGST Gurugram Commissionerate alleging excess input tax credit claims between April 2019 and March 2023. The order demands recovery and imposes penalties totaling over ₹13 crore, though the company plans to appeal and expects no material financial impact.
WeWork India has disclosed to the stock exchanges that the order was issued under Section 74(9) of the CGST/HGST Acts, read with Section 20 of the IGST Act, 2017. The company maintains that the order overlooks the merits of its case and will challenge it before the Commissioner (Appeals), CGST Gurugram.
Litigation Details
The order-in-original cites alleged excess availment and utilization of input tax credit in GSTR-3B compared to GSTR-2A/2B, along with certain ineligible ITC claims. The demand includes recovery of ₹1.37 crore under IGST, ₹6.03 crore under CGST, and ₹6.03 crore under SGST, plus equivalent penalties.
Company’s Position
WeWork India has stated that it does not foresee any material impact on its financials, operations, or other activities at this stage. The company intends to pursue an appeal within the prescribed timelines.
Key Highlights
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Order issued by CGST Gurugram Commissionerate
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Alleged excess ITC claims between 2019–2023
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Demand and penalty totaling over ₹13 crore
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Company to appeal, expects no material impact
Sources: WeWork India stock exchange filing